RMD Age Error

[thepensionmaven]

Accountant mistakenly gave 5% owner of LLP us date of birth which turns out to be incorrect, 11/11/49, but accountant gave 11/11/50.

No previous distributions based on his being age 72 in 2022, this would have been the 1st RMD. With the corrected date of birth, don't we need to go back to the old 70 1/2 and recalculate 2019, 20 and 21?

[C. B. Zeller]

No. Age 72 applies for individuals whose date of birth was on or after July 1, 1949 (i.e., attained age 70½ on or after January 1, 2020). Based on the date of birth of 11/11/1949, age 72 applies, so the first distribution calendar year was 2021 and RBD was 4/1/2022.

[thepensionmaven]

Never done a calc for April 1st, always calculate for my clients to take by 12/31 of the year of their 70 1/2 (72) birthday.

Which account balance is used for the 4/1/2022 distribution?  Obviously the second distribution by 12/31 is based on the 12/31/2021 account balance.  But what about the annual 2022 distribution based on 12/31/2021 account balance due by 12/31/2022.

Thanks.

 

[C. B. Zeller]

The 4/1/2022 distribution is for the 2021 distribution calendar year. It uses the 12/31/2020 account balance.

[thepensionmaven]

Thanks.